Trading for the Masses

I find my self singing the song from Evita everyday the FED is scheduled to drop rates. I do start crying when I think of how a limited number of private bankers have totally ruined the financial system in this country. Whatever happened to cycles? Its ok to take the heat for some time then recover and do it all over again. No reason we need continually take Fed Funds Rates down every time we catch a cold as it will only lead to deathly bout of pneumonia in the long run. But that is the path this FED has chosen. The funny thing about the markets is rates had climbed about 15% on the ten year notes the past week since the last fed cut a week ago. The market knows there is major inflationary concerns and I believe that is why we sold off hard after the post FED rate cut euphoria was over today. Just see the chart. Almost hysterical to watch the retail guy sucked into the fed fun then slammed for nearly 40 pts on the ES contract in less than an hours time. Big reversal and now the FED is done for 6 weeks again, unless they want to do another desperation rate cut. Rate cuts still don’t have much effect on the homeowners mortgage rates, and lower rates won’t help the fact that housing prices are tumbling harder and harder as the little piggies blow the house down!!!

Go FED go!